1-1 By: Hilbert (Senate Sponsor - Lindsay) H.B. No. 2965 1-2 (In the Senate - Received from the House April 23, 1999; 1-3 April 27, 1999, read first time and referred to Committee on 1-4 Natural Resources; May 10, 1999, reported favorably, as amended, by 1-5 the following vote: Yeas 5, Nays 0; May 10, 1999, sent to 1-6 printer.) 1-7 COMMITTEE AMENDMENT NO. 1 By: Armbrister 1-8 Amend H.B. 2965 (House Engrossment) as follows: 1-9 (1) In SECTION 1.03(b) of the bill strike subdivisions (1) 1-10 and (2) (page 4, lines 36 and 37) and renumber accordingly. 1-11 COMMITTEE AMENDMENT NO. 2 By: Armbrister 1-12 Amend H.B. 2965 (House Engrossment) as follows: 1-13 (1) In SECTION 2.05(a)(2) of the bill strike "Saturday in 1-14 May" (p. 5, line 44) and substitute "uniform election date of the 1-15 calendar year". 1-16 (2) In SECTION 2.06 of the bill strike "Saturday in May" (p. 1-17 6, line 22) and substitute "uniform election date of the calendar 1-18 year". 1-19 COMMITTEE AMENDMENT NO. 3 By: Armbrister 1-20 Amend H.B. No. 2965 (House engrossment) as follows: 1-21 (1) In SECTION 1.03(b) of the bill strike "(b) The district" 1-22 (page 4, line 30) and substitute "(b) The authority" and strike 1-23 Subdivisions (5) and (6) (page 4, lines 40 and 41) and substitute: 1-24 "(5) District 130; 1-25 (6) District 135; and 1-26 (7) District 150." 1-27 (2) In SECTION 1.03 of the bill, following Subsection (c) of 1-28 that section (page 4, between lines 45 and 46), insert: 1-29 "(d) After the confirmation election held under Section 2.05 1-30 of this Act, the authority includes only that part of the area 1-31 described by this section that the temporary board determines is 1-32 inside the authority's boundaries as provided by Section 2.05(e) of 1-33 this Act. 1-34 (e) On a municipality's annexation of any of the authority's 1-35 territory, the annexed territory is excluded from the authority's 1-36 territory. The authority shall continue to provide services to the 1-37 annexed territory in accordance with contracts in effect at the 1-38 time of the annexation unless a written agreement between the board 1-39 and the governing body of the municipality provides otherwise." 1-40 (3) Following SECTION 1.03 of the bill (page 4, between 1-41 lines 45 and 46), add the following section: 1-42 "SECTION 1.04. EXCLUSION OF CERTAIN TERRITORY. (a) A 1-43 district organized under Section 52, Article III, or Section 59, 1-44 Article XVI, Texas Constitution, that is located in the portion of 1-45 the territory described by Section 1.03(a) of this Act that is 1-46 south of Beltway 8 or east of U.S. Highway 59 may petition for 1-47 exclusion of its territory from the authority's territory. Before 1-48 the 61st day after the date the authority receives the petition, 1-49 the board shall: 1-50 (1) grant the petition and order the territory 1-51 excluded if the petition: 1-52 (A) includes an accurate legal description of 1-53 the boundaries of the territory to be excluded; and 1-54 (B) the petition is filed with the authority 1-55 before January 1, 2001; and 1-56 (2) if the board grants the petition, file for 1-57 recording in the office of the county clerk of Harris County a copy 1-58 of the order and a description of the authority's boundaries as 1-59 they exist after the exclusion of the territory. 1-60 (b) The order excluding the territory is effective 1-61 immediately after the order and description are recorded." 2-1 (4) In ARTICLE 1 of the bill, redesignate SECTION 2-2 1.04 of the bill (page 4, lines 46-50) as SECTION 1.05 and 2-3 redesignate SECTION 1.05 of the bill (page 4, lines 51-55) as 2-4 SECTION 1.06. 2-5 (5) In SECTION 2.02(a) of the bill (page 4, line 68), strike 2-6 "the nine" and substitute "nine". 2-7 (6) In SECTION 4.01 of the bill, following Subsection (b) of 2-8 that section (page 7, between lines 27 and 28), insert: 2-9 "(c) The authority's rights, powers, privileges, authority, 2-10 functions, and duties are subject to the continuing right of 2-11 supervision of the state, to be exercised by and through the 2-12 commission. 2-13 (d) The authority shall exercise its rights, powers, 2-14 privileges, and authority in a manner that will promote 2-15 regionalization of water treatment and distribution." 2-16 (7) In SECTION 4.03 of the bill: 2-17 (A) at the end of Subdivision (2) of Subsection 2-18 (b) (page 7, line 46), strike "or"; and 2-19 (B) at the end of Subdivision (3) of Subsection 2-20 (b) (page 7, line 47), between "crops" and the period, insert: 2-21 "(4) that produces 10 million gallons or less 2-22 annually; or 2-23 (5) used solely for electric generation". 2-24 (8) In the heading of SECTION 4.06 of the bill between 2-25 "SYSTEMS." and "The" (page 8, line 15), insert "(a)". 2-26 (9) Following Section 4.06(4) of the bill (page 8, between 2-27 lines 26 and 27), insert: 2-28 "(b) The authority shall give persons outside the 2-29 authority's boundaries, including the City of Houston, the option 2-30 to contract for available excess capacity of the authority's water 2-31 treatment or supply system or, before construction of a water 2-32 treatment or supply system begins, for additional capacity of the 2-33 system. The authority must offer a contract that would enable the 2-34 person to pay for the excess capacity or additional capacity in 2-35 accordance with the person's pro rata share of the capital 2-36 investment and operational and maintenance costs for providing the 2-37 excess capacity or additional capacity." 2-38 (10) In SECTION 4.10 of the bill, following Subsection (b) 2-39 of that section (page 9, between lines 8 and 9), insert: 2-40 "(c) The board shall coordinate with the City of Houston to 2-41 develop an interregional plan for a system to distribute treated 2-42 surface water in an economical and efficient manner." 2-43 A BILL TO BE ENTITLED 2-44 AN ACT 2-45 relating to the creation, administration, powers, duties, 2-46 operation, and financing of the North Harris County Regional Water 2-47 Authority; granting the power of eminent domain and the authority 2-48 to issue bonds; providing a civil penalty. 2-49 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 2-50 ARTICLE 1. GENERAL PROVISIONS 2-51 SECTION 1.01. CREATION. (a) A regional water authority, to 2-52 be known as the North Harris County Regional Water Authority, is 2-53 created in Harris County, subject to a confirmation election held 2-54 under Section 2.05 of this Act. The authority is a governmental 2-55 agency and a body politic and corporate. 2-56 (b) The authority is created under and is essential to 2-57 accomplish the purposes provided by Section 59, Article XVI, Texas 2-58 Constitution. 2-59 SECTION 1.02. DEFINITIONS. In this Act: 2-60 (1) "Authority" means the North Harris County Regional 2-61 Water Authority. 2-62 (2) "Board" means the board of directors of the 2-63 authority. 2-64 (3) "Commission" means the Texas Natural Resource 2-65 Conservation Commission. 2-66 (4) "Director" means a member of the board. 2-67 (5) "Local government" means a municipality, county, 3-1 special district, or other political subdivision of this state or a 3-2 combination of two or more of those entities. 3-3 (6) "Person" has the meaning assigned by Section 3-4 311.005, Government Code. 3-5 (7) "Subsidence district" means the Harris-Galveston 3-6 Coastal Subsidence District. 3-7 (8) "System" means a network of pipelines, conduits, 3-8 canals, pumping stations, force mains, treatment plants, and any 3-9 other construction, device, or related appurtenance used to treat 3-10 or transport water. 3-11 (9) "Water" includes: 3-12 (A) groundwater, percolating or otherwise; 3-13 (B) any surface water, natural or artificial, 3-14 navigable or nonnavigable; and 3-15 (C) industrial and municipal wastewater. 3-16 (10) "Subsidence" means the lowering in elevation of 3-17 the surface of land by the withdrawal of groundwater. 3-18 (11) "Agricultural crop" means food or fiber 3-19 commodities grown for resale or commercial purposes that provide 3-20 food, clothing, or animal feed. 3-21 SECTION 1.03. DESCRIPTION OF BOUNDARIES. (a) Except as 3-22 provided by this section, the authority includes the territory that 3-23 is contained in the following area, whether the territory contains 3-24 noncontiguous parcels of land or whether the territory is located 3-25 within the boundaries of any other governmental entity or political 3-26 subdivision of the state, but only if also contained in one or more 3-27 of the house districts described by this section: 3-28 BEGINNING at the intersection of the Harris and Waller County 3-29 line with the north right-of-way line of U.S. Highway 290 (current 3-30 alignment); 3-31 THENCE northwest along the Harris and Waller County line to 3-32 the intersection with Spring Creek; 3-33 THENCE continuing southeasterly along said Harris and Waller 3-34 County line, with the meanders of Spring Creek to the intersection 3-35 of the Waller and Montgomery County line; 3-36 THENCE southeasterly along the Harris and Montgomery County 3-37 line continuing with the meanders of said Spring Creek; to the 3-38 intersection with the City of Houston, corporate limits; 3-39 THENCE along said City of Houston corporate limits, the 3-40 following: south approximately one half mile; east approximately 3-41 one half mile to the City of Humble corporate limits; north along 3-42 said City of Humble corporate limits approximately one half mile to 3-43 aforementioned Spring Creek; east along Spring Creek to its 3-44 confluence with the San Jacinto River to the intersection of U.S. 3-45 Highway 59; easterly and southerly along the take line for Lake 3-46 Houston to the intersection with the southeasterly right-of-way of 3-47 the Union Pacific Railroad; southwesterly along said Union Pacific 3-48 Railroad for approximately two miles; south to the north end of 3-49 Duessen Parkway; southeast along the east side of Duessen Parkway 3-50 and along the north side of the access road to the intersection 3-51 with North Lake Houston Parkway; 3-52 THENCE departing said City of Houston corporate limits, west 3-53 along the north side of said North Lake Houston Parkway to the 3-54 beginning of Mount Houston Road, and continuing west on Mount 3-55 Houston Road to the 6900 block to the intersection of Suburban; 3-56 THENCE south along Suburban to the City of Houston corporate 3-57 limits; 3-58 THENCE along said City of Houston corporate limits, the 3-59 following: west to Hirsch Road; south along the west side of Hirsch 3-60 Road to Langely; west along the south side of Langley to the 3-61 southbound feeder road of US Highway 59; northeast along the west 3-62 side of the feeder road of US Highway 59 to Little York; west along 3-63 the south side of Little York to Bentley; north along the east side 3-64 of Bentley to Sagebrush; west along the north side of Sagebrush to 3-65 Halls Bayou; south along Halls Bayou to Little York; west along the 3-66 south side of Little York to Aldine Westfield Road; north along the 3-67 east sides of Aldine Westfield Road to its intersection with the 3-68 easterly extension of the City of Houston corporate limits; west to 3-69 the Hardy Toll Road; north along the Hardy Toll Road approximately 4-1 0.25 miles; east approximately 0.35 mile; north approximately 0.15 4-2 mile; west approximately 0.35 mile; northwest along the Hardy Toll 4-3 Road approximately 1 mile; southwesterly along an irregular path 4-4 generally west to Carby; west along Carby to Airline Drive; south 4-5 along Airline Drive to Canino; west along Canino to Sweetwater; 4-6 north along Sweetwater to West Road; west to Interstate 45/US 75; 4-7 south along Interstate 45/US 75 to south of Bluebell Road; 4-8 southerly along an irregular path generally south and west to West 4-9 Mount Houston Road; west along Mount Houston Road to a line east of 4-10 Ella Boulevard; south along a line generally parallel to Ella 4-11 Boulevard to south of West Gulf Bank; west along the south side of 4-12 West Gulf Bank to Tomball Parkway; northwest along Tomball Parkway 4-13 approximately 1.5 mile; west along an irregular path to North 4-14 Houston-Rosslyn Road; north along North Houston-Rosslyn Road to 4-15 Vogel Creek; west along Vogel Creek to the FWD CRIP RR; south 4-16 along the FWD CRIP RR to Logview; west along Logview to Hollister; 4-17 south along Hollister to White Oak Bayou; east along White Oak 4-18 Bayou to Twisting Vine; south along Twisting Vine to West Little 4-19 York; west along West Little York to Fairbanks North Houston; south 4-20 along Fairbanks North Houston to Cole Creek; west along Cole Creek 4-21 to Hempstead Road; northwest along Hempstead Road to Brittmore 4-22 Road, also being the intersection with U.S. Highway 290, Northwest 4-23 Freeway; 4-24 THENCE departing said City of Houston corporate limits and 4-25 continuing northwest along U.S. Highway 290, Northwest Freeway, at 4-26 Spencer Road; 4-27 THENCE northwest along U.S. Highway 290, Northwest Freeway 4-28 (current alignment), to the intersection of the Harris and Waller 4-29 County line, the POINT OF BEGINNING. 4-30 (b) The district includes only that territory described by 4-31 Subsection (a) of this section that is also in the following state 4-32 representative districts as described by Article II, Chapter 2, 4-33 Acts of the 72nd Legislature, 3rd Called Session, 1992 (Article II, 4-34 Article 195a-11, Vernon's Texas Civil Statutes), as the districts 4-35 existed on the effective date of this Act: 4-36 (1) District 141; 4-37 (2) District 140; 4-38 (3) District 127; 4-39 (4) District 126; 4-40 (5) District 135; and 4-41 (6) District 150. 4-42 (c) Notwithstanding Subsections (a) and (b) of this section, 4-43 the authority does not include any area that, on the effective date 4-44 of this Act, is inside the municipal limits of the city of Houston 4-45 or inside the municipal limits of the city of Humble. 4-46 SECTION 1.04. APPLICABILITY OF OTHER LAW. (a) This Act 4-47 prevails over any inconsistent provision of general law. 4-48 (b) This Act does not prevail over or preempt a provision of 4-49 Chapter 151, Water Code, or Chapter 36, Water Code, that is being 4-50 implemented by the subsidence district. 4-51 SECTION 1.05. FINDING OF BENEFIT. All the land and other 4-52 property included within the boundaries of the authority will be 4-53 benefited by the works and projects that are to be accomplished by 4-54 the authority under powers conveyed by this Act. The authority is 4-55 created to serve a public use and benefit. 4-56 ARTICLE 2. DIRECTORS 4-57 SECTION 2.01. BOARD OF DIRECTORS. (a) The authority is 4-58 governed by a board of nine directors. 4-59 (b) The board shall appoint a person to fill a vacancy in 4-60 the office of director until the next election for directors. If 4-61 the position is not scheduled to be filled at the election, the 4-62 person elected to fill the position serves only for the remainder 4-63 of the unexpired term. 4-64 (c) To be eligible to serve as director, a person must be a 4-65 qualified voter in the voting district from which the person is 4-66 elected or appointed. 4-67 SECTION 2.02. METHOD OF ELECTION OF DIRECTORS. (a) One 4-68 director shall be elected from each of the nine single-member 4-69 voting districts by the qualified voters of the voting district. 5-1 (b) A person shall indicate on the person's application for 5-2 a place on the ballot the voting district that the person seeks to 5-3 represent. 5-4 (c) In the manner described by Section 49.103(d), Water 5-5 Code, the board shall redraw the single-member voting districts as 5-6 soon as practicable after: 5-7 (1) each federal decennial census; and 5-8 (2) any change in the boundaries of the authority. 5-9 (d) At the first election after each time the voting 5-10 districts are redrawn: 5-11 (1) nine new directors shall be elected to represent 5-12 the single-member voting districts; and 5-13 (2) the directors elected shall draw lots to determine 5-14 their terms so that: 5-15 (A) four directors serve two-year terms; and 5-16 (B) five directors serve four-year terms. 5-17 (e) Subchapter C, Chapter 146, Election Code, applies to the 5-18 consideration of votes for a write-in candidate for the initial 5-19 permanent director or permanent director as if the authority were a 5-20 municipality. 5-21 SECTION 2.03. SERVICE OF DIRECTORS. (a) Temporary 5-22 directors serve until the initial permanent directors are elected 5-23 under Section 2.05 of this Act. 5-24 (b) The initial permanent directors serve until permanent 5-25 directors are elected under Section 2.06 of this Act. 5-26 (c) Permanent directors serve staggered four-year terms. 5-27 (d) A director serves until the director's successor has 5-28 qualified. 5-29 SECTION 2.04. TEMPORARY DIRECTORS. (a) The temporary board 5-30 of directors is composed of three individuals appointed by the 5-31 commission. 5-32 (b) If a temporary director fails to qualify for office, the 5-33 temporary directors who have qualified shall appoint a person to 5-34 fill the vacancy. If at any time there are fewer than two 5-35 qualified temporary directors, or if the temporary directors cannot 5-36 agree on the appointment, the commission shall appoint the 5-37 necessary number of persons to fill all vacancies on the board. 5-38 (c) A temporary director is not eligible to be elected under 5-39 Section 2.05 of this Act. 5-40 SECTION 2.05. CONFIRMATION AND INITIAL PERMANENT DIRECTORS 5-41 ELECTION. (a) The temporary board of directors shall: 5-42 (1) establish nine single-member voting districts in 5-43 the manner described by Section 49.103(d), Water Code; and 5-44 (2) on the first Saturday in May 2000 hold an election 5-45 to confirm the establishment of the authority and to elect nine 5-46 initial permanent directors. 5-47 (b) A person who desires to be a candidate for the office of 5-48 initial permanent director may file an application with the 5-49 temporary board to have the candidate's name printed on the ballot. 5-50 (c) At the confirmation and initial permanent directors 5-51 election, the temporary board of directors shall have placed on the 5-52 ballot: 5-53 (1) the name of each candidate filing for the office 5-54 of director; and 5-55 (2) blank spaces to write in the names of other 5-56 persons. 5-57 (d) If the authority is created at the election, the 5-58 temporary board of directors, at the time the vote is canvassed, 5-59 shall: 5-60 (1) declare the qualified person who receives the most 5-61 votes for each position to be elected as the initial director for 5-62 that position; and 5-63 (2) include the results of the initial directors 5-64 election in the authority's election report to the commission. 5-65 (e) As soon as practicable after the initial permanent 5-66 directors have qualified, the directors shall draw lots to 5-67 determine their terms so that: 5-68 (1) four directors serve terms that expire when 5-69 permanent directors are elected at the first election held under 6-1 Section 2.06 of this Act; and 6-2 (2) five directors serve terms that expire when 6-3 permanent directors are elected at the second election held under 6-4 Section 2.06 of this Act. 6-5 (f) Section 41.001(a), Election Code, does not apply to the 6-6 confirmation and initial permanent directors election held under 6-7 this section. 6-8 (g) The temporary board of directors shall draft language 6-9 for the ballot proposition used for the confirmation election. The 6-10 ballot proposition must clearly and completely explain: 6-11 (1) the powers and duties of the authority; 6-12 (2) whether the authority has the power of eminent 6-13 domain; 6-14 (3) whether the authority has the authority to issue 6-15 bonds; 6-16 (4) whether the authority has the authority to impose 6-17 taxes; and 6-18 (5) whether the authority has the authority to impose 6-19 fees. 6-20 (h) The ballot language must explain the nature of any fees 6-21 or taxes the authority has the authority to impose. 6-22 SECTION 2.06. ELECTION DATES. On the first Saturday in May 6-23 in each subsequent even-numbered year, the appropriate number of 6-24 directors shall be elected to the board. 6-25 SECTION 2.07. COST OF ELECTION. (a) The temporary board of 6-26 the authority shall fund the cost of the confirmation and initial 6-27 permanent directors election if the temporary board is able to find 6-28 a reasonable means of funding the election. 6-29 (b) If the temporary board is unable to fund the entire cost 6-30 of the election, the temporary board of the authority and the board 6-31 of directors of the subsidence district may execute an agreement by 6-32 which: 6-33 (1) the subsidence district shall pay the portion of 6-34 the costs that could not be funded by the district; and 6-35 (2) the authority shall repay the subsidence district 6-36 for those costs within a reasonable period. 6-37 ARTICLE 3. ADMINISTRATIVE PROVISIONS 6-38 SECTION 3.01. MEETINGS AND ACTIONS OF BOARD. The board 6-39 shall meet at least four times each year and may meet at any other 6-40 time the board considers appropriate. 6-41 SECTION 3.02. GENERAL MANAGER. (a) The board shall employ 6-42 a general manager as the chief administrative officer of the 6-43 authority. The board may delegate to the general manager full 6-44 authority to manage and operate the affairs of the authority 6-45 subject only to the orders of the board. 6-46 (b) The duties of the general manager include: 6-47 (1) the administration of the orders of the board; 6-48 (2) coordination with state, federal, and local 6-49 agencies; 6-50 (3) the oversight of development of authority plans 6-51 and programs; and 6-52 (4) other duties assigned by the board. 6-53 (c) The board shall determine the terms of office and 6-54 employment and the compensation to be paid the general manager. 6-55 The general manager may be discharged by majority vote of the 6-56 board. 6-57 SECTION 3.03. EMPLOYEES; BONDS. (a) The general manager of 6-58 the authority shall employ all persons necessary for the proper 6-59 handling of the business and operations of the authority and may 6-60 employ attorneys, bookkeepers, engineers, and other expert and 6-61 specialized personnel the board considers necessary. The general 6-62 manager shall determine compensation to be paid by the authority. 6-63 (b) The general manager may discharge employees of the 6-64 authority. 6-65 (c) The general manager of the authority and each employee 6-66 or contractor of the authority who is charged with the collection, 6-67 custody, or payment of any money of the authority shall execute a 6-68 fidelity bond in an amount determined by the board and in a form 6-69 and with a surety approved by the board. The authority shall pay 7-1 for the bond. 7-2 ARTICLE 4. POWERS AND DUTIES 7-3 SECTION 4.01. GENERAL POWERS AND DUTIES. (a) The authority 7-4 has all of the rights, powers, privileges, authority, functions, 7-5 and duties necessary and convenient to accomplish the purposes of 7-6 this Act, including those provided by Chapter 49, Water Code. 7-7 (b) The authority may: 7-8 (1) provide for the conservation, preservation, 7-9 protection, recharge, and prevention of waste of groundwater, and 7-10 for the reduction of groundwater withdrawals, in a manner 7-11 consistent with the purposes of Section 59, Article XVI, Texas 7-12 Constitution; 7-13 (2) for the purposes of reducing groundwater 7-14 withdrawals and subsidence, acquire or develop surface water and 7-15 groundwater supplies from sources inside of or outside of the 7-16 boundaries of the authority and may conserve, store, transport, 7-17 treat, purify, distribute, sell, and deliver water to persons, 7-18 corporations, municipal corporations, political subdivisions of the 7-19 state, and others, inside of and outside of the boundaries of the 7-20 authority; 7-21 (3) enter into contracts with persons, including 7-22 political subdivisions of the state, on terms and conditions the 7-23 board considers desirable, fair, and advantageous for the 7-24 performance of its rights, powers, and authority under this Act; 7-25 (4) coordinate water services provided inside of, 7-26 outside of, or into the authority; and 7-27 (5) administer and enforce the provisions of the Act. 7-28 SECTION 4.02. AUTHORITY RULES. (a) The authority shall 7-29 adopt and enforce rules reasonably required to implement this Act, 7-30 including rules governing procedures before the board. 7-31 (b) The board shall compile its rules in a book and make 7-32 them available for use and inspection at the authority's principal 7-33 office. 7-34 SECTION 4.03. FEES AND CHARGES. (a) The authority may 7-35 establish fees and charges as necessary to enable the authority to 7-36 fulfill the authority's regulatory obligations provided by this 7-37 Act. 7-38 (b) The authority may charge against the owner of a well 7-39 located in the authority's boundaries a fee on the amount of water 7-40 pumped from the well. The board shall establish the rate of a fee 7-41 under this subsection only after a special meeting on the fee. The 7-42 board by rule may exempt classes of wells from the fee under this 7-43 subsection. The board may not apply the fee to a well: 7-44 (1) with a casing diameter of less than five inches 7-45 that serves a single-family dwelling; 7-46 (2) regulated under Chapter 27, Water Code; or 7-47 (3) used for irrigation of agricultural crops. 7-48 (c) Fees the board establishes must be sufficient to: 7-49 (1) achieve water conservation, prevent waste of 7-50 water, serve as a disincentive to pumping groundwater, and 7-51 accomplish the purposes of this Act, including making available 7-52 alternative water supplies; and 7-53 (2) enable the authority to meet operation and 7-54 maintenance expenses and pay the principal of and interest on debt 7-55 issued in connection with the exercise of the authority's general 7-56 powers and duties. 7-57 (d) The temporary board may set fees to pay for the initial 7-58 operation of the authority and the election of the initial 7-59 permanent board until the permanent board has been elected. 7-60 SECTION 4.04. CIVIL PENALTY; INJUNCTION. (a) A person who 7-61 violates a rule or order of the authority is subject to a civil 7-62 penalty of not less than $50 and not more than $5,000 for each 7-63 violation or each day of a continuing violation. 7-64 (b) The authority may bring an action to recover the penalty 7-65 in a district court in the county where the violation occurred. 7-66 The penalty shall be paid to the authority. 7-67 (c) The authority may bring an action for injunctive relief 7-68 in a district court in the county where a violation of an authority 7-69 rule or order occurs or is threatened to occur. The court may 8-1 grant to the authority, without bond or other undertaking, a 8-2 prohibitory or mandatory injunction that the facts warrant, 8-3 including a temporary restraining order, temporary injunction, or 8-4 permanent injunction. 8-5 (d) The authority may bring an action for a civil penalty 8-6 and injunctive relief in the same proceeding. 8-7 SECTION 4.05. WATER SUPPLY PLANS. The authority by rule 8-8 shall, as needed but not less frequently than every five years, 8-9 develop, prepare, revise, and adopt comprehensive water supply and 8-10 drought contingency plans for various areas of the authority. The 8-11 plans: 8-12 (1) must be consistent with regional planning; and 8-13 (2) must include 10-year, 20-year, and 50-year 8-14 projections of water needs within the authority. 8-15 SECTION 4.06. ACQUISITION, CONSTRUCTION, AND OPERATION OF 8-16 SYSTEMS. The authority may: 8-17 (1) acquire and provide by purchase, gift, or lease a 8-18 water treatment or supply system inside of or outside of the 8-19 authority's boundaries; 8-20 (2) design, finance, or construct a water treatment or 8-21 supply system and provide water services inside of or outside of 8-22 the authority's boundaries; 8-23 (3) operate, lease, or sell a water treatment or 8-24 supply system the authority constructs or acquires; and 8-25 (4) contract with any person to operate or maintain a 8-26 water treatment or supply system the person owns. 8-27 SECTION 4.07. SALE OR REUSE OF WATER OR BY-PRODUCT. The 8-28 authority may store, sell, or reuse: 8-29 (1) water; or 8-30 (2) any by-product from the authority's operations. 8-31 SECTION 4.08. EMINENT DOMAIN. The authority may exercise 8-32 the power of eminent domain in the manner provided in Chapter 21, 8-33 Property Code, to acquire property of any kind to further 8-34 authorized purposes of the authority. The authority may not 8-35 exercise the power of eminent domain outside of the boundaries of 8-36 the authority. 8-37 SECTION 4.09. CONTRACTS. (a) The authority may enter into 8-38 a contract with any person or legal entity regarding the 8-39 performance of any purpose or function of the authority, including 8-40 a contract to jointly construct, finance, own, or operate works, 8-41 improvements, facilities, plants, equipment, or appliances 8-42 necessary to accomplish a purpose or function of the authority. A 8-43 contract may be of unlimited duration. 8-44 (b) The authority may purchase an interest in a project used 8-45 for a purpose or function of the authority. 8-46 (c) The authority may contract for: 8-47 (1) the purchase or sale of water or water rights; 8-48 (2) the performance of activities within the powers of 8-49 the authority to promote the continuing and orderly development of 8-50 land and property in the authority through the purchase, 8-51 construction, or installation of works, improvements, facilities, 8-52 plants, equipment, or appliances so that, to the greatest extent 8-53 possible, considering sound engineering practices and economic 8-54 feasibility, all the land and property in the authority may receive 8-55 services of the works, improvements, facilities, plants, equipment, 8-56 or appliances of the authority; or 8-57 (3) the construction, ownership, maintenance, or 8-58 operation of any works, improvements, facilities, plants, 8-59 equipment, or appliances of the authority or another person or 8-60 legal entity. 8-61 (d) The authority may purchase surplus property from this 8-62 state, the United States, or another public entity through a 8-63 negotiated contract without bids. 8-64 (e) An officer, agent, or employee of the authority who is 8-65 financially interested in the contract of the type described by 8-66 Subsection (d) of this section shall disclose the interest to the 8-67 board before the board votes on the acceptance of the contract. 8-68 SECTION 4.10. COOPERATION WITH AND ASSISTANCE OF OTHER 8-69 GOVERNMENTAL ENTITIES. (a) In implementing this Act, the board 9-1 may cooperate with and request the assistance of the Texas Water 9-2 Development Board, the commission, the United States Geological 9-3 Survey, the subsidence district, other local governments, and other 9-4 agencies of the United States and this state. 9-5 (b) The subsidence district may enter into an interlocal 9-6 contract with the authority to carry out the authority's purposes 9-7 and may carry out the governmental functions and services specified 9-8 in the interlocal contract. 9-9 SECTION 4.11. GIFTS AND GRANTS. The authority is authorized 9-10 to accept a gift or grant from money collected by the subsidence 9-11 district under Chapter 151, Water Code, to fund a water treatment 9-12 or supply system. The authorization in this section is in addition 9-13 to the authorization provided in Section 49.229, Water Code. 9-14 SECTION 4.12. EXPENDITURES. (a) The authority's money may 9-15 be disbursed only by check, draft, order, or other instrument. 9-16 (b) Disbursements of the authority must be signed by at 9-17 least two directors, except the board by resolution may allow the 9-18 general manager, treasurer, bookkeeper, or other employee of the 9-19 authority to sign disbursements. 9-20 (c) The board by resolution may allow disbursements to be 9-21 transferred by federal reserve wire system to accounts in the name 9-22 of the authority. 9-23 SECTION 4.13. TAXATION. The district may not impose an ad 9-24 valorem tax. 9-25 ARTICLE 5. NOTES AND BONDS 9-26 SECTION 5.01. REVENUE NOTES. (a) The board, without an 9-27 election, may borrow money on negotiable notes of the authority to 9-28 be paid solely from the revenue derived from any legal source, 9-29 including: 9-30 (1) tolls, charges, and fees the authority imposes; 9-31 (2) the sale of water, water or sewer services, or any 9-32 other service or product of the authority; 9-33 (3) grants or gifts; 9-34 (4) the ownership and operation of all or a designated 9-35 part of the authority's works, improvements, facilities, plants, or 9-36 equipment; and 9-37 (5) contracts between the authority and any person, 9-38 including a local government. 9-39 (b) The notes may be first or subordinate lien notes at the 9-40 board's discretion. An obligation may not be a charge on the 9-41 property of the authority. An obligation may only be a charge on 9-42 revenue pledged for the payment of the obligation. 9-43 SECTION 5.02. BONDS. (a) To carry out a power or authority 9-44 conferred by this Act, the authority may issue bonds secured by all 9-45 or part of the revenue derived from any source, including any 9-46 source described by Section 5.01(a) of this Act. 9-47 (b) In issuing or securing a bond or note of the authority, 9-48 the authority may exercise any power of an issuer under Chapter 9-49 656, Acts of the 68th Legislature, Regular Session, 1983 (Article 9-50 717q, Vernon's Texas Civil Statutes). 9-51 (c) The authority may conduct a public, private, or 9-52 negotiated sale of the bonds. 9-53 (d) The authority's bonds must: 9-54 (1) be authorized by board resolution; 9-55 (2) be issued in the authority's name; 9-56 (3) be signed by the president or vice president of 9-57 the board, which may be accomplished by facsimile signature; 9-58 (4) be attested by the secretary of the board, which 9-59 may be accomplished by facsimile signature; and 9-60 (5) bear the authority's seal or facsimile seal. 9-61 (e) An authority bond may be secured by an indenture of 9-62 trust with a corporate trustee. 9-63 (f) The authority may issue bonds in more than one series as 9-64 required for carrying out the purposes of this Act. In issuing 9-65 bonds secured by revenue of the district, the authority may 9-66 reserve the right to issue additional bonds secured by the 9-67 authority's revenue that are on a parity with or are senior or 9-68 subordinate to the bonds issued earlier. 9-69 (g) The resolution authorizing the bonds or the trust 10-1 indenture securing the bonds may specify additional provisions that 10-2 constitute a contract between the authority and its bondholders. 10-3 The board may provide: 10-4 (1) for additional bond provisions; and 10-5 (2) for a corporate trustee or receiver to take 10-6 possession of the authority's facilities if the authority defaults. 10-7 (h) Section 49.181, Water Code, does not apply to bonds or 10-8 notes issued by the authority. 10-9 SECTION 5.03. REFUNDING BONDS. The provisions of this Act 10-10 that apply to the authority's issuance of other bonds, their 10-11 security, and the remedies of the holders apply to refunding bonds. 10-12 SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. After the 10-13 authority authorizes bonds, the authority shall submit the bonds 10-14 and the record relating to their issuance to the attorney general 10-15 for approval. If the bonds are secured by a pledge of the proceeds 10-16 of a contract between the authority and a municipality or other 10-17 governmental agency, authority, or district, the authority shall 10-18 submit to the attorney general a copy of the contract and the 10-19 proceedings of the municipality or other governmental agency, 10-20 authority, or district authorizing the contract. If the attorney 10-21 general finds that the bonds have been authorized and each contract 10-22 has been made in accordance with the constitution and laws of this 10-23 state, the attorney general shall approve the bonds and contracts. 10-24 On approval, the bonds shall be registered by the comptroller. 10-25 SECTION 5.05. FUNDING BY OTHER DISTRICTS. (a) The 10-26 authority shall develop a procedure for cooperatively funding a 10-27 project of the authority with money from other districts inside of 10-28 the authority's boundaries if the authority project fulfills a 10-29 governmental purpose of both the authority and other districts. 10-30 (b) Not later than the 90th day before the date the 10-31 authority issues bonds, other than refunding bonds, to finance a 10-32 project, the authority shall provide written notice of the 10-33 authority's intention to issue the bonds to each district inside of 10-34 the authority's boundaries that may be benefited or affected by the 10-35 project. The notice must include the value of the bonds planned to 10-36 be issued, a description of the project the bonds would finance, 10-37 and a schedule of the portion of the project costs financed by the 10-38 bonds that may be allocated to each district benefited or affected. 10-39 The schedule must be prepared by means of a formula certified by 10-40 the authority's engineer. 10-41 (c) A district may enter into a contract with the authority 10-42 for the district to finance a portion of the proposed project with 10-43 the district's resources instead of using proceeds from bonds of 10-44 the authority for that purpose. The contract must be executed 10-45 before the authority issues the bonds. As provided in the 10-46 contract, the authority must: 10-47 (1) reduce the value of the bond issuance to the 10-48 degree that the district provides project funding; and 10-49 (2) credit the district for its contribution to the 10-50 project financing and adjust the allocation of revenue pledged to 10-51 the payment of the bonds so that the authority avoids using, to a 10-52 degree commensurate with the contribution, revenue from the 10-53 district to service the authority's bond debt or interest. 10-54 ARTICLE 6. MISCELLANEOUS PROVISIONS 10-55 SECTION 6.01. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. 10-56 (a) The proper and legal notice of the intention to introduce this 10-57 Act, setting out the general substance of this Act, has been 10-58 published as provided by law, and the notice and a copy of this Act 10-59 have been furnished to all persons, agencies, officials, or 10-60 entities to which they are required to be furnished by the 10-61 constitution and other laws of this state, including the governor, 10-62 who has submitted the notice and the Act to the commission. 10-63 (b) The commission has filed its recommendations relating to 10-64 this Act with the governor, lieutenant governor, and speaker of the 10-65 house of representatives within the required time. 10-66 (c) All requirements of the constitution and laws of this 10-67 state and the rules and procedures of the legislature with respect 10-68 to notice, introduction, and passage of this Act are fulfilled and 10-69 accomplished. 11-1 SECTION 6.02. EMERGENCY. The importance of this legislation 11-2 and the crowded condition of the calendars in both houses create an 11-3 emergency and an imperative public necessity that the 11-4 constitutional rule requiring bills to be read on three several 11-5 days in each house be suspended, and this rule is hereby suspended, 11-6 and that this Act take effect and be in force from and after its 11-7 passage, and it is so enacted. 11-8 * * * * *